Are Timeshares Worth the Money?
Are Timeshares Worth the Money? How to Buy Smart and Avoid Costly Mistakes
Timeshares promise guaranteed vacations, but they rarely work as an investment. Here is how to decide if one is worth it — and how to buy smart while avoiding the most expensive mistakes.
1 What Is a Timeshare?
A timeshare is a shared ownership model that gives you the right to use a vacation property—usually a resort condo with bedrooms and a kitchen—for a set period each year. Ownership can take different forms:
- Fixed weeks – the same week every year
- Floating weeks – a flexible week, but subject to availability
- Points systems – points that can be used for days, weeks, or exchanges at affiliated resorts
While timeshares promise guaranteed vacations, they also come with long-term commitments like annual maintenance fees that often increase over time.
2 Are Timeshares Worth It?
The answer depends on your goals. Unlike traditional property, timeshares are not an investment. Their resale value drops significantly—most are worth only a fraction of the original purchase price.
However, some buyers find them worth it for the lifestyle benefits:
- Affordable vacations if bought on resale at very low cost
- Access to desirable resorts worldwide through exchange programs
- A structured way to guarantee annual trips
For others, the fees, limited flexibility, and difficulty reselling make timeshares more of a money pit than a financial benefit. If timeshare fees feel like an unnecessary burden, reducing other expenses can free up your budget for travel.
3 Common Mistakes to Avoid When Buying
1. Believing It’s an Investment.
Sales reps often suggest timeshares appreciate in value. In reality, resale markets show the opposite—most resell for pennies on the dollar.
2. Buying on Vacation Impulse.
Timeshare presentations are designed to pressure you while you’re relaxed. Never sign on the spot. Instead, rent first to test the experience.
3. Paying Retail Prices.
Buying directly from developers can cost $20,000+. On resale marketplaces like eBay, many timeshares sell for $1 to a few hundred dollars. Retail incentives like “VIP perks” rarely justify the premium price.
4. Choosing the Wrong Location.
Don’t buy a timeshare in a place you wouldn’t personally vacation at. Trading to better locations is harder than sales reps make it sound.
5. Underestimating Maintenance Fees.
Annual fees average $900 to $3,000, and they rise over time. Failure to pay can damage your credit and send the account to collections.
4 How to Make a Timeshare Work for You
Buy on Resale Market.
Look for timeshares being sold by owners eager to exit. This can save you tens of thousands of dollars.
Pick Desirable Locations.
Properties in vacation hotspots like Hawaii, Orlando, or Caribbean beaches are easier to trade and enjoy long term.
Learn the Exchange System.
Most satisfaction comes from planning ahead and making full use of the points or exchange options available.
Budget for Ongoing Fees.
Factor in annual maintenance costs and potential increases. If these strain your finances, the timeshare won’t feel like a vacation win.
5 Alternatives to Buying a Timeshare
- Vacation rentals (Airbnb, Vrbo): Pay only for the trips you take.
- Hotel loyalty programs: Points can give flexibility and free nights.
- Travel deals: With apps and subscription services, you may find cheaper and more flexible options without the long-term contract.
And remember, you can always negotiate your existing bills with services like Billshark, freeing up cash for your dream vacations without a timeshare commitment.
6 Final Verdict: Should You Buy a Timeshare?
Timeshares can be worth it if:
- You buy resale at a very low cost
- You enjoy vacationing in the same spot or love planning exchanges in advance
- You’re comfortable with rising annual fees
They are not worth it if:
- You expect them to be an investment
- You value flexibility and spontaneity in your travel plans
- You’re not prepared for long-term financial obligations
